Quick Summary
The gaming industry is experiencing significant challenges following the decision by the GST Council to impose a 28% tax on the full player deposit value in online money gaming. This move has led to the closure of gaming startup Quizy and prompted other companies like MPL to make drastic changes to their operations, including cutting manpower. MPL, one of the leading players in the industry, has announced a decision to reduce its workforce by half in order to cope with the increased tax burde
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FAQ :
The challenges stem from the GST Council's decision to impose a 28% tax on the full player deposit value for online money gaming.
Gaming startup Quizy has closed down, and MPL, a leading player, has cut its workforce by 50%.
MPL's founders stated that the substantial increase in taxes made it necessary to take drastic measures, including layoffs, to ensure the company's survival.
Companies are concerned that the hike could deter investors, lead players to unlawful offshore platforms, and force even established companies to cut costs, impacting the overall ecosystem.
Quizy's founders cited the new GST decision as a major factor, stating that the increased tax burden made it unsustainable to continue operating.
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